The record-setting rally in U.S. equities accelerated in the wake of Wednesday’s China trade deal and signs consumer demand remains strong. Bond yields rose. All three main U.S. stock benchmarks surged to all-time highs after setting multiple records earlier this week, with technology and financial shares leading the surge. Alphabet Inc.’s market valuation hit $1 trillion for the first time. Banks and chipmakers rallied after solid earnings reports from Taiwan Semiconductor Manufacturing Co. and Morgan Stanley. Treasuries fell after data showed U.S. retail sales strengthened in December, while the dollar gained. The Senate approved President Donald Trump’s U.S.-Mexico-Canada free trade agreement, handing the president a major political win on the same day senators were sworn in as jurors in his impeachment trial. The formal signing of a phase one deal between the world’s two biggest economies has put the trade war on hold as far as many investors are concerned. Assuming the detente lasts, traders will be seeking fresh catalysts, most likely in economic data and the ramp-up of earnings season. West Texas crude fluctuated in a narrow range before pushing higher. Elsewhere, the Stoxx Europe 600 Index closed at a record high after swinging between gains and losses. The Euro erased earlier gains, while most European bonds edged up. The Ruble slipped in the wake of Russian President Vladimir Putin’s call for sweeping constitutional changes and subsequent replacement of his long-serving Prime Minister. Meanwhile, soybeans slumped overnight after China signaled purchases would be based on demand, rather than a pre-set amount.
To mark my 1975th issue of TraderNoble Daily Commentary I am offering a special 2 year rate of Euro 2750 for my Platinum Service which includes 1 to 4 updated emails throughout the trading day To demonstrate this value, a monthly subscription over the same period would cost 4440 euro in total This offer represents a 38% discount and is open to both new and existing members. If anyone is interested in this offer can you please email me on bryan@tradernoble.com for details
For anyone following my Platinum Service it made 91 points yesterday and now ahead by 1264 points for January, having made 818 points in December, 780 points in November, 1649 points in October, 1620 points in September, 2387 points in August, 1153 points in July, 1346 points in June,1722 points in May, 955 points in April and 1027 points in March. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
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Equities
The S&P 500 Index increased 0.8% to close at 3316.
The Dow Jones Industrial Average increased 267 points to close at yet another record high at 29.297.
The NASDAQ Composite climbed 1.1% to 9357, the highest on record with the largest surge in two weeks.
The Stoxx Europe 600 Index climbed 0.2% to close at 420.
Currencies
Here is a summary of the main Changes in F.X. Markets:
The Bloomberg Dollar Spot Index advanced 0.1%.
The British Pound increased 0.3% to $1.3074.
The Euro dipped 0.1% to $1.1138.
The Japanese Yen depreciated 0.2% to 110.15 per dollar.
Bonds
The yield on 10-year Treasuries advanced two basis points to 1.80%.
Britain’s 10-year yield fell one basis points to 0.64%, the lowest in more than eleven weeks, on its fifth straight decline.
Germany’s 10-year yield fell two basis points to -0.22%.
Commodities
West Texas Intermediate crude advanced 1.2% to $58.53 a barrel.
Gold rose weakened 0.1% at $1,554 an ounce.
This morning on the Economic Front we have Chinese GDP at 2.00 am. This is followed at 9.00 am by Euro-Zone Current Account and at 9.30 am by UK GDP. At 10.00 am we have Euro-Zone CPI and Construction Output. Next we have U.S. Building Permits and Housing Starts at 1.30 pm, followed by Industrial Production and Capacity Utilisation at 2.15 pm. Finally, at 3.00 pm we have the JOLTS Job Openings and the University of Michigan Consumer Sentiment Index.
March S&P 500
Yet another record high as the S&P traded further into my 3300/3350 target range as the market left yet another ‘’Open Gap’’ as the S&P closed on its highs at 3317. Initially the S&P hit my 3308 sell level before selling off to my revised 3303.50 T/P level and I am now flat. Both the S&P and Dow are trading above the top of their respective Daily Bollinger Bands and at the top of the Williams Index. Today I will be an aggressive seller from 3327/3342 with a higher 3355 stop which I will hope to narrow after we get short. The S&P has strong support from 3275/3288 and I will be a buyer on any dip to this area with a 3267 stop.
EUR/USD
Late in the New York session the Euro traded lower to my 1.1130 buy level. As I am short the Dow I decided to limit my overnight risk and I covered this position at 1.1136 and I am now flat. Today I will again look to buy the market from 1.1070/1.1110 with a 1.1035 stop.
March Dollar Index
No Change as I am still a seller from 97.20/97.60 with the same 97.90 stop.
March DAX
The DAX continues to trade sideways despite the record closes in the U.S Indices all week and I am still flat. Today I will leave my 13250/13310 buy level unchanged with a 13195 stop.
March FTSE
I am still flat the FTSE which is also struggling to follow the US Indices higher. Today I will again leave my 7625/7655 sell level unchanged with the same 7705 stop.
Dow Rolling Contract
After the Dow traded higher to my initial 25170 sell level I emailed my Platinum Members to exit any short position at my revised 29145 T/P level. Subsequently and just before the close the Dow spiked higher and I went short in small size at a price of 29240. I will now look to add to this position any further move higher to 29440 with a higher 29535 stop. I will have a T/P level on this short position at 29170 and if any of the above levels are hit I will be back with a new update for my Platinum Members.
March NASDAQ
Thankfully we had no sell level in the NASDAQ yesterday and I am still flat. The market has strong resistance from 9370/9430 and I will be a seller in this area with a 9475 stop.
March BUND
I am still flat the Bund as the market traded sideways to higher for most of yesterday. I am not going to chase the Bund higher and I will leave my 170.70/171.10 buy level unchanged with the same 170.35 stop.
Gold Rolling Contract
I am still flat Gold and today I will leave my 1531/1541 buy level unchanged with a 1525 stop.
Silver Rolling Contract
My Silver plan worked well with the market trading lower to my 17.85 buy level before rallying to my revised 18.00 T/P level and I am now flat. Today I will again look to buy Silver from 17.45/17.85 with the same 18.15 stop. If I am taken long I will have a T/P level at 18.05.
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